{"title":"Adapting Theory: Limited Neural Resource, Attention and Risk Attitude","authors":"Qiqi Cheng","doi":"10.2139/ssrn.3116312","DOIUrl":"https://doi.org/10.2139/ssrn.3116312","url":null,"abstract":"This paper presents a new descriptive theory for decision making under risk, called adapting theory, which deals with how the brain will adapt the distribution of limited neural resources to encode subjective utility(SV) for efficient use in contexts. This distribution will affect the relative utilities between each payoff, finally determining the risk attitude. Therefore, the adaptation will determine the change in risk attitude. We propose that the adaptation of distribution can be divided into two dimensions, the degree of concentration (utility of a given value) and the location of concentration(attention) of neural resources. By introducing four assumptions on the distribution, this paper studies how those two dimensions vary accordingly in decision contexts, and finally determines risk attitude. By specifying these two parameters as a function of payoffs, our theory provides a novel and unified account of many empirical phenomena. Our theory also yields new predictions, including some that distinguish it from prospect theory and the salience theory. At the same time, our theory can be applied in more decision contexts than prospect theory. In addition, the implications of our theory may provide a useful insight for those decision theories based on the utility function.","PeriodicalId":218595,"journal":{"name":"ORG: Behavioral Economics & Organizational Behavior (Topic)","volume":"41 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-03-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132801530","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"To Grasp Cognition in Action, Combine Behavioral Experiments with Protocol Analysis","authors":"Charlotte Reypens, S. Levine","doi":"10.1108/S2397-52102017006","DOIUrl":"https://doi.org/10.1108/S2397-52102017006","url":null,"abstract":"With behavioral experiments and protocol analysis, researchers can capture cognition in action. Using behavioral experiments, they can study realized behavior, not perception or self-reports. And they can do that in a controlled laboratory environment to establish causality, curbing spurious relationships. With protocol analysis, a method to elicit decision-makers’ thoughts, researchers can tap into cognitive processes. In combination, the two methods offer a novel approach to grasp mental processes alongside behavior, to reach causality and replicate findings. We describe the methods, demonstrate how researchers can apply them, and share practices from the design of experimental instruments to the replication of findings.","PeriodicalId":218595,"journal":{"name":"ORG: Behavioral Economics & Organizational Behavior (Topic)","volume":"2 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2017-12-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129999171","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Applying Behavioral Economics in Predictive Analytics for B2B Churn: Findings from Service Quality Data","authors":"Arash Barfar, B. Padmanabhan, A. Hevner","doi":"10.2139/ssrn.2874045","DOIUrl":"https://doi.org/10.2139/ssrn.2874045","url":null,"abstract":"Abstract Motivated by the long-standing debate on rationality in behavioral economics and the potential of theory-driven predictive analytics, this paper examines the link between service quality and B2B churn. Using longitudinal B2B transactional data with service quality indicators provided by a large company, we present evidence that both rationality and bounded-rationality assumptions play significant roles in predicting organizational decisions on churn. Specifically, variables that relate to the assumed rationality of organizations appear to provide accurate predictions while, at the same time, variables that capture boundedly rational decision rules appear to play a role through “somatic states” that make organizations more sensitive to the rational variables. In addition to presenting a novel approach for predicting organizational decisions on churn, this paper offers theoretical and managerial insights as well as opportunities for future research at the intersection of behavioral economics and predictive analytics for decision-making.","PeriodicalId":218595,"journal":{"name":"ORG: Behavioral Economics & Organizational Behavior (Topic)","volume":"30 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2016-11-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132607291","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Why Do People Give Less Weight to Advice the Further it is from Their Initial Opinion?","authors":"F. Ravazzolo, Øistein Røisland","doi":"10.2139/ssrn.1612297","DOIUrl":"https://doi.org/10.2139/ssrn.1612297","url":null,"abstract":"Experimental studies on decision making based on advice received from others find that the weight put on the advice is negatively related to the distance between the advice and the decisionmaker's initial opinion. In this paper, we show that the distance effect can follow from rational signal extraction when the decisionmaker has imperfect knowledge about the advisor's competence. What drives the result is the assumption that the decisionmaker is better informed about her own competence than about the advisor's competence.","PeriodicalId":218595,"journal":{"name":"ORG: Behavioral Economics & Organizational Behavior (Topic)","volume":"28 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2010-04-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114977539","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Why are Residents Reluctant to Consult Attending Physicians?","authors":"O. Swank","doi":"10.2139/ssrn.1404644","DOIUrl":"https://doi.org/10.2139/ssrn.1404644","url":null,"abstract":"A physician performs two tasks: making diagnoses and determining treatments. To reduce medical error, residents are supposed to consult their supervisors when they face uncommon circumstances. However, recent research shows that residents are reluctant to do so. This paper presents a model that explains (i) which residents shy away from consulting; (ii) when residents are reluctant; (iii) the importance of protocols in the medical sector; and (iv) when consulting is a sign of strength or a sign of weakness. Furthermore, I show that encouraging residents to consult by investigating mishaps leads to another distortion: residents will give too much weight to own assessments.","PeriodicalId":218595,"journal":{"name":"ORG: Behavioral Economics & Organizational Behavior (Topic)","volume":"8 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2009-05-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127314561","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}